Natural gas futures sank Monday as warmer forecasts and rebounding production volumes weighed on outlooks, with the February contract volatile on its last trading day.

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At A Glance:

  • NGI models 190 Bcf draw
  • Production rebounds to 106 Bcf/d
  • East cash markets rise

The February Nymex gas futures contract dropped 22.2 cents day/day to settle at $2.490/MMBtu. The March contract, which takes over as the prompt month Tuesday, fell 12.1 cents to $2.054.

NGI’s Spot Gas National Avg. rose 20.0 cents to $2.620. Gains were driven by colder weather in the East.

The March contract is already trading at the lowest level for the prompt-month price series since April 2023. It is also not too far off from a three-year low of 1.944 reached in March 2023, Mizuho Securities’ energy futures...